T-Mobile quarterly earnings increase attributed to iPhone 7, promotions
U.S. wireless provider T-Mobile has posted its latest quarterly results, seeing a double-digit increase in earnings, a 165 percent increase in net income, and improved customer retention, partly on the strength of Apple's iPhone 7 launch in September.
In the last quarter, T-Mobile gleaned $9.2 billion in total revenues, with $7.1 billion of that from services. The company has added 2.0 million customers, leading to 13% service revenue growth, and $366 million in net income. The latter figure included a one-time number of $122 million in spectrum gains.
In the second quarter of 2016, the company posted net income of $225 million. It reported $138 million in the third quarter of 2015.
T-Mobile's total revenues for Q3 2016 grew by 18 percent year-over-year. The increase was attributed to the combination of the launch of the iPhone 7 in the quarter, the introduction of the T-Mobile One plans, and an increase in branded prepaid customer migrations to postpaid plans.
On Sept. 12, T-Mobile CEO John Legere declared demand for the iPhone 7 a "phenomenon," and said that preorders thus far have been "like four times bigger than the iPhone 6."
"The first four days of the iPhone 7 launch are by far the biggest ever for T-Mobile," Legere said. "I actually ordered the jet black, I'm quite excited about it."
Apple will not be breaking out individual sales figures of the iPhone 7 family in Tuesday's earnings announcement. Last year, the iPhone 6s and iPhone 6s Plus sold through 13 million units in three days of availability.
In the last quarter, T-Mobile gleaned $9.2 billion in total revenues, with $7.1 billion of that from services. The company has added 2.0 million customers, leading to 13% service revenue growth, and $366 million in net income. The latter figure included a one-time number of $122 million in spectrum gains.
In the second quarter of 2016, the company posted net income of $225 million. It reported $138 million in the third quarter of 2015.
T-Mobile's total revenues for Q3 2016 grew by 18 percent year-over-year. The increase was attributed to the combination of the launch of the iPhone 7 in the quarter, the introduction of the T-Mobile One plans, and an increase in branded prepaid customer migrations to postpaid plans.
On Sept. 12, T-Mobile CEO John Legere declared demand for the iPhone 7 a "phenomenon," and said that preorders thus far have been "like four times bigger than the iPhone 6."
"The first four days of the iPhone 7 launch are by far the biggest ever for T-Mobile," Legere said. "I actually ordered the jet black, I'm quite excited about it."
Apple will not be breaking out individual sales figures of the iPhone 7 family in Tuesday's earnings announcement. Last year, the iPhone 6s and iPhone 6s Plus sold through 13 million units in three days of availability.
Comments
You forgot:
- No optical image stabilization.
- Only a single camera on the XL.
- No stereo speakers even though it has the bezels/room for them.
- Doesn't even come with a pair of earbuds. Seriously, you pay that much for a flagship and don't even get earbuds?
http://www.imore.com/pixel-iphone-7-and-grading-curve
Ritchie is dean on with this article.
Failing that, they will make up some story about iPhone batteries exploding (or something similar)
TBH, only a few numbskuls in NYC actually care about exactly how many Apple did or did not sell. We all know that they've sold lots especially the black editions.
I predict that Apple will get a downgrade due to concerns about their product pipeline. They have to find something to back up their stock shorting now don't they?
Look at Alphabet with their supposedly unlimited growth ad/search business. However, they're not sitting back on that. At least they're trying to sell some hardware to increase revenue. They're trying to take a piece of Apple's pie. What is Apple doing to cripple Alphabet? Nothing. Absolutely nothing. Alphabet has the search business all to themselves while Apple can't defend its iPhone business at all. Apple should have bought DuckDuckGo and at least try to hamper Alphabet's search engine business. Apple could easily afford it and it might even be useful to them for Siri's knowledge engine. You people laugh at the comparison of the Pixel to the iPhone but when there's plenty of positive commentary about the Pixel being equal to or better than the latest iPhone then that's a major media perception problem. Investors apparently believe it to be true. Apple isn't doing anything to get people to say they're hurting Google's search engine business.
So, when Apple's share price tanks on earnings, only Apple can be blamed for doing nothing to offset iPhone sales losses. Tim Cook had been warned, but he seems oblivious of what happens to Apple value. All the other tech companies will have huge share gains and Apple will sink. What's disappointing is there's no real reason for this having to happen. Apple has the funds it needs to promote growth but refuses to use them. Apple's P/E is half of what most major tech companies have. Of course, IBM's P/E also sucks. Is Apple as a company only barely better than IBM and less than half as good as Microsoft. I'm just saying Apple needs to do something about its perception. Is it really that difficult to do? Other tech companies can manage to do so, but Apple can't? It's a puzzle I can't put together.